The BoE results revealed a rise in the number of mortgages approved in June, increasing to 47,584 – up from 44,169 the previous month and the highest number since April 2008.
Net lending for house purchase grew by £343m in June – only slightly higher than the rise in May. The number of mortgages approved for remortgaging grew to 35,011.
Seema Shah, property economist at analyst firm Capital Economics, said the modest rise in mortgage approvals in June suggested that the upward trend in housing market activity had ‘reasserted itself’.
Paul Samter, economist at the Council of Mortgage Lenders, commented: “Overall, these numbers are consistent with our outlook for a gradual improvement from historic lows following the financial system turmoil last year, but for any recovery to be slow and drawn out.”
Gross mortgage lending by building societies hit the highest level seen this year in June. Although it remains 40% lower than last year, the figure was up 30% on May’s results.
Net lending by building societies in June 2009 was £511m, compared to £471m in June 2008. Mortgage approvals in June 2009 also dropped to £1,817m compared to £2,721m in June 2008.
Brian Morris, head of savings policy at the BSA, said: “Gross mortgage lending by building societies was just under £2bn in June 2009, the highest level seen this year, and up 30% on May. Despite this, lending remains at historically low levels, and is 40% lower than in June 2008. Mortgage approvals show signs of stabilising as they reached a year high of £1.8bn, but are more than 30% down on this time last year.”
